WallStSmart

Clearfield Inc (CLFD)vsLumentum Holdings Inc (LITE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lumentum Holdings Inc generates 1260% more annual revenue ($2.11B vs $154.78M). LITE leads profitability with a 11.9% profit margin vs -4.4%. CLFD trades at a lower P/E of 61.7x. LITE earns a higher WallStSmart Score of 69/100 (B-).

CLFD

Avoid

34

out of 100

Grade: F

Growth: 4.0Profit: 3.0Value: 3.0Quality: 5.0

LITE

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 6.5Value: 4.7Quality: 3.8
Piotroski: 4/9Altman Z: 0.58
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLFDSignificantly Overvalued (-927.5%)

Margin of Safety

-927.5%

Fair Value

$3.06

Current Price

$29.49

$26.43 premium

UndervaluedFair: $3.06Overvalued
LITESignificantly Overvalued (-255.6%)

Margin of Safety

-255.6%

Fair Value

$161.46

Current Price

$777.17

$615.71 premium

UndervaluedFair: $161.46Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLFD2 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

LITE5 strengths · Avg: 9.2/10
Revenue GrowthGrowth
65.5%10/10

Revenue surging 65.5% year-over-year

EPS GrowthGrowth
71.1%10/10

Earnings expanding 71.1% YoY

Market CapQuality
$57.26B9/10

Large-cap with strong market position

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.978/10

Growing faster than its price suggests

Areas to Watch

CLFD4 concerns · Avg: 2.5/10
Market CapQuality
$384.52M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.5%3/10

ROE of 2.5% — below average capital efficiency

P/E RatioValuation
61.7x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-85.5%2/10

Earnings declined 85.5%

LITE3 concerns · Avg: 2.0/10
P/E RatioValuation
232.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
65.5x2/10

Trading at 65.5x book value

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CLFD

The strongest argument for CLFD centers on Price/Book, Revenue Growth. Revenue growth of 15.6% demonstrates continued momentum.

Bull Case : LITE

The strongest argument for LITE centers on Revenue Growth, EPS Growth, Market Cap. Revenue growth of 65.5% demonstrates continued momentum. PEG of 0.97 suggests the stock is reasonably priced for its growth.

Bear Case : CLFD

The primary concerns for CLFD are Market Cap, Return on Equity, P/E Ratio. A P/E of 61.7x leaves little room for execution misses.

Bear Case : LITE

The primary concerns for LITE are P/E Ratio, Price/Book, Altman Z-Score. A P/E of 232.5x leaves little room for execution misses.

Key Dynamics to Monitor

CLFD carries more volatility with a beta of 1.97 — expect wider price swings.

LITE is growing revenue faster at 65.5% — sustainability is the question.

LITE generates stronger free cash flow (51M), providing more financial flexibility.

Monitor COMMUNICATION EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LITE scores higher overall (69/100 vs 34/100) and 65.5% revenue growth. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Clearfield Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Clearfield, Inc. manufactures, markets, and sells standard and custom passive connectivity products to OEM, enterprise and fiber-to-facility markets in the United States and internationally. The company is headquartered in Minneapolis, Minnesota.

Lumentum Holdings Inc

TECHNOLOGY · COMMUNICATION EQUIPMENT · USA

Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.

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